NEW DELHI: The Central Bureau of Investigation (CBI) has lodged a case against British aeroengine manufacturer Rolls-Royce, its executives, and two India-born businessmen reportedly on corruption charges in a deal to procure 24 Hawk 115 Advance Jet Trainer aircraft.
Among those named in the case, said reports, are arms dealer Sudhir Choudhrie and British defence firms Rolls Royce Plc and British Aerospace Systems.
Though the documents of agreement are said to have prohibited any deal or payment to middlemen, alleged kickbacks were paid to such agents, reports added. The London office of Rolls-Royce has issued a statement saying that they are assisting Indian authorities.
Choudhrie booked: Choudhrie, a British citizen, has been booked by the CBI for alleged corruption in the procurement. He is accused of conspiring with Rolls-Royce, its former India Director Tim Jones, British Aerospace Systems (BAE Systems), and unknown public servants. He did this to deceive the Indian government and receive bribes, commissions, and kickbacks, the reports said.
CBI and the Enforcement Directorate had earlier also probed Choudhrie’s involvement in defence deals. This included alleged bribery in securing a contract for an upgrade of artillery guns for an Israel-based defence firm in 2004 and in the Barak missile scandal two years later.
The cases were closed due to lack of evidence.
Separate case: Rolls-Royce too was under investigation in 2018-19 in a separate case related to dubious payments in the form of commissions in return for contracts from three staterun Indian companies.
The firm allegedly made payments to a Singapore-based middleman between 2007 and 2011 in bank accounts in Singapore and Hong Kong.
Among others included in the charges are unknown public servants who reportedly abused their official position. They used their offices for the approval and procurement of the 24 aircraft for GBP 734.21 million.
They are also said to be involved in permitting licence for manufacturing 42 additional aircraft by the Hindustan Aeronautics Limited (HAL) against materials supplied by the said manufacturer for an additional amount of $308.247 million and $7.5 million towards Manufacturer’s Licence Fee.
This, say reports, was done in lieu of huge bribes, commissions and kickbacks.
